According to Odaily, Farcaster announced last month that it has raised $150 million in funding, led by Paradigm. With a valuation of $1 billion, this marks the largest investment in Web3 social media to date. The high valuation can be attributed to the involvement of cryptocurrency venture capital firms.
Cryptocurrency investor Liron Shapira suggests that if venture capitalists still have LP capital to invest, their decision to invest $150 million instead of returning it implies they can charge an additional $20-30 million in management fees. An anonymous source due to business constraints revealed that, like most protocols, Farcaster is expected to launch a token, and investors will be eager to capture its fully diluted value.